Medtronic, Inc. (NYSE:MDT) today announced financial results for its
fourth quarter and fiscal year ended April 27, 2012.
The company reported worldwide fourth quarter revenue of $4.297 billion,
compared to the $4.167 billion reported in the fourth quarter of fiscal
year 2011, an increase of 4 percent on a constant currency basis after
adjusting for a $42 million negative foreign currency impact or 3
percent as reported. As reported, fourth quarter net earnings were $991
million, or $0.94 per diluted share, an increase of 28 percent and 31
percent, respectively, over the same period in the prior year. As
detailed in the attached table, fourth quarter net earnings and diluted
earnings per share on a non-GAAP basis were $1.036 billion and $0.99, an
increase of 7 percent and 10 percent, respectively, over the same period
in the prior year.
The company reported fiscal year 2012 revenue of $16.184 billion, an
increase of 3 percent on a constant currency basis after adjusting for a
$273 million positive foreign currency impact or 4 percent as reported.
As reported, fiscal year 2012 net earnings were $3.617 billion or $3.41
per diluted share, an increase of 17 percent and 19 percent,
respectively. As detailed in the attached table, fiscal year 2012
non-GAAP net earnings and diluted earnings per share were $3.666 billion
and $3.46, an increase of 1 percent and 3 percent, respectively.
Fiscal year 2012 international revenue of $7.356 billion grew 7 percent
on a constant currency basis or 11 percent as reported. Fourth quarter
international revenue of $1.998 billion increased 7 percent on a
constant currency basis or 5 percent as reported. International sales
accounted for 46 percent of Medtronic's worldwide revenue in the
quarter. Emerging market revenue of $463 million increased 20 percent on
a constant currency basis or 19 percent as reported and now represents
11 percent of company revenue.
"I am pleased with our improved revenue growth this quarter in a dynamic
healthcare environment," said Omar Ishrak, Medtronic chairman and chief
executive officer. "Our growth was broad-based across our businesses and
geographies, including strong U.S. launches of the Resolute™ Integrity®
drug-eluting stent and RestoreSensor® spinal cord stimulator
and strong growth in emerging markets. As we continue to focus on
innovation, globalization, and execution, I see many opportunities for
improved growth."
Cardiac and Vascular Group
The Cardiac and Vascular Group at Medtronic includes the Cardiac Rhythm
Disease Management (CRDM) and CardioVascular businesses. The Group had
worldwide sales in the quarter of $2.253 billion, representing an
increase of 4 percent on a constant currency basis or 3 percent as
reported. Cardiac and Vascular Group international sales of $1.288
billion increased 5 percent on a constant currency basis or 3 percent as
reported. Group revenue performance was driven by Coronary,
Transcatheter Valves, Endovascular, AF Solutions, Renal Denervation, and
Peripheral, partially offset by small declines in Pacing and Implantable
Cardioverter Defibrillators (ICDs).
CRDM revenue of $1.295 billion was flat on a constant currency basis or
down 2 percent as reported. Fourth quarter revenue from ICDs was $744
million, down 1 percent on a constant currency basis, while pacing
revenue was $492 million, a decrease of 2 percent on a constant currency
basis. Continued growth of the AF Solutions business offset weaker ICD
and Pacing sales.
CardioVascular revenue of $958 million grew 10 percent on a constant
currency basis or 9 percent as reported. The Coronary business grew
worldwide revenue 12 percent on a constant currency basis and U.S.
revenue 24 percent on the impressive launch of the Resolute™ Integrity®
drug-eluting stent, resulting in a doubling of U.S. drug-eluting stent
market share. The Structural Heart and Endovascular & Peripheral
businesses grew worldwide revenue 7 percent and 10 percent,
respectively, on a constant currency basis.
Restorative Therapies Group
The Restorative Therapies Group at Medtronic includes the Spine,
Neuromodulation, Diabetes, and Surgical Technologies businesses. The
Group had worldwide sales in the quarter of $2.044 billion, representing
an increase of 4 percent as reported and on a constant currency basis.
Group revenue was driven by solid performances in Surgical Technologies,
Neuromodulation, and Diabetes, partially offset by declines in U.S.
Spine. Restorative Therapies Group international sales of $710 million
increased 11 percent on a constant currency basis or 9 percent as
reported.